Seatrium hit by US$475 million contract termination for nearly completed wind vessel
The contract was with a Maersk Offshore Wind affiliate, for deployment at US offshore wind farm
[SINGAPORE] Seatrium on Friday (Oct 10) announced that it had received a termination notice for a US$475 million contract inked with a Maersk Offshore Wind affiliate in 2022.
The contract was for the construction of a wind turbine installation vessel at the US offshore wind farm, Empire Wind 1. It is about 98.9 per cent complete.
Seatrium said that it will “explore viable solutions”, including with the end-customer, Empire Offshore Wind.
It did not elaborate upon the “allegations” received within the notice of termination.
The marine engineering company added that it is evaluating its legal and commercial options, including the possibility of legal proceedings for “wrongful termination”.
The vessel was set to be based on Sembcorp Marine’s in-house design in collaboration with the client.
Shares of Seatrium ended on Thursday 0.8 per cent or S$0.02 lower at S$2.44.
